January is the month that many couples decide to file for divorce as part of their New Year's resolutions. Known to many divorce attorneys as "Divorce Month," January brings a flush of filings from those seeking to end their marriages. While it is not surprising that many people are inspired to change their relationship with the coming of the new year, it is shocking to see how many do not realize how important financial upkeep is throughout the entirety of the divorce process.
How can I protect my finances?
There are so many things that families must think through during divorce. From the emotional pain that goes along with divorce to the desire to get the entire process completed, many actions must be extremely deliberate to ensure the best possible outcome. Why, then, is the financial decisions are often the least considered? It is no doubt that personal and emotional considerations are extremely important, but it is also essential that financial decisions are made in the best interests of the whole family.
Help make important financial choices by:
- Running a credit report to make sure that all joint accounts are closed and all debts are organized separately moving forward.
- Speaking with a financial planner before using any pension or 401(k) accounts in negotiations.
- Reconsidering the need to remain in the family home.
- Reevaluating insurance needs and how home, auto, life, and health insurance will need to change.
- Understanding spending habits by printing and examining at least six months' worth of bank statements for trends and anomalies.
Financial decisions that are made during a divorce are extremely important. Everything makes an impact. Divorce is seen as a time to start fresh, and it would be unfortunate to allow financial mistakes to complicate the end of a marriage that would have otherwise been smooth.
Are you filing for divorce? Be sure that you are in your strongest financial place. Call Cutter & Lax, Attorneys at Law to get started today.